Case Study: Business Plan For Buffalo Wild Wings, Inc.
Business Plan For
Buffalo Wild Wings, Inc.
Submitted by:
Hai Le
Keller Graduate School
HOPS - 582
9/12/2014
Table of Contents
I. Executive Summary Pg. 3
II. Introduction Pg. 4 & 5
III. Industry Analysis Pg. 6
IV. Organization Pg. 7
V. Management/Human Resources Pg. 6 & 7
VI. Operations Pg. 7 & 8
VII. Competitive Analysis Pg. 10
VIII. Marketing Pg. 11
IX. Assumptions Page Pg. 12
X. Financial Documents Pg. 13-15
XI. Appendix Pg. 16-19
Executive Summary
Buffalo Wild Wings Grill and Bar was created in 1981 by Kent and Ohio who coming up with the idea that build a restaurant with New York-style Buffalo wings. Today, Buffalo Wild Wings Grill & Bar is one of the Top 10 Fastest-Growing Restaurant Chains in the country. Currently, …show more content…
launched its initial public offering of 3,250,000 shares of Common Stock at a price of $17.00 per share. But on September 13, 2014 is reach the price at $147 per share. Buffalo Wild Wings Inc. is listed on the NASDAQ under the symbol BWLD.
Introduction
COMPANY OWNED VS FRANCHISED LOCATIONS
In December 26, 2004, Buffalo Wild Wings already had more than 306 restaurants in 31 states; 103 of these were company-owned occur 33.66 percent and with 203 that was franchised with around 66.33 percent. In 2005, BWLD make a plan to open over 20 new company-owned restaurants and 50 new franchised restaurants.
The majority profit of Buffalo Wild Wings are come from restaurant sales with a very consistent percentage of 89 percent, and the franchise sales and fees just take a small place in total profit with only 11 percent.
FRANCHISE AGREEMENT:
Buffalo Wild Wings franchise agreement require some typical initial term is from 15 to 20-years, with a chance to renewal a franchise agreement. The initial franchise fee that Buffalo Wild Wings accept is $42,500 for the first restaurant, $32,500 for the second restaurant and $27,500 for each subsequent restaurant. The Franchisees also pays a royalty fee of 5.0% of their restaurant sales. The franchise agreements typically allow them to assess franchisees an advertising fee in the amount of 3.0% of their restaurant sales, of which 2.5% is contributed to their Advertising Fund and the remaining 0.5% is …show more content…
Each marketing campaign has a theme that reflects guest lifestyles and behaviors. These lifestyles and behaviors are the cornerstone for creating key brand touch-points within each campaign that includes media, promotions, partnerships, and food and beverage experiences that will encourage social interactions and bring each theme to life. For example, we promoted our NCAA sponsorship at Buffalo Wild Wings in 2013, which provided our guests with an opportunity to participate in our Big Shot Challenge; an augmented reality game in which our guests shot virtual free throws from their seat in the restaurant on their mobile phone. In addition, our local restaurant marketing efforts are designed to enhance community connections. Examples of this are our Home Team Advantage and Eat Wings, Raise Funds programs that connect our restaurants to local sports teams and community
Buffalo Wild Wings, Inc.
Submitted by:
Hai Le
Keller Graduate School
HOPS - 582
9/12/2014
Table of Contents
I. Executive Summary Pg. 3
II. Introduction Pg. 4 & 5
III. Industry Analysis Pg. 6
IV. Organization Pg. 7
V. Management/Human Resources Pg. 6 & 7
VI. Operations Pg. 7 & 8
VII. Competitive Analysis Pg. 10
VIII. Marketing Pg. 11
IX. Assumptions Page Pg. 12
X. Financial Documents Pg. 13-15
XI. Appendix Pg. 16-19
Executive Summary
Buffalo Wild Wings Grill and Bar was created in 1981 by Kent and Ohio who coming up with the idea that build a restaurant with New York-style Buffalo wings. Today, Buffalo Wild Wings Grill & Bar is one of the Top 10 Fastest-Growing Restaurant Chains in the country. Currently, …show more content…
launched its initial public offering of 3,250,000 shares of Common Stock at a price of $17.00 per share. But on September 13, 2014 is reach the price at $147 per share. Buffalo Wild Wings Inc. is listed on the NASDAQ under the symbol BWLD.
Introduction
COMPANY OWNED VS FRANCHISED LOCATIONS
In December 26, 2004, Buffalo Wild Wings already had more than 306 restaurants in 31 states; 103 of these were company-owned occur 33.66 percent and with 203 that was franchised with around 66.33 percent. In 2005, BWLD make a plan to open over 20 new company-owned restaurants and 50 new franchised restaurants.
The majority profit of Buffalo Wild Wings are come from restaurant sales with a very consistent percentage of 89 percent, and the franchise sales and fees just take a small place in total profit with only 11 percent.
FRANCHISE AGREEMENT:
Buffalo Wild Wings franchise agreement require some typical initial term is from 15 to 20-years, with a chance to renewal a franchise agreement. The initial franchise fee that Buffalo Wild Wings accept is $42,500 for the first restaurant, $32,500 for the second restaurant and $27,500 for each subsequent restaurant. The Franchisees also pays a royalty fee of 5.0% of their restaurant sales. The franchise agreements typically allow them to assess franchisees an advertising fee in the amount of 3.0% of their restaurant sales, of which 2.5% is contributed to their Advertising Fund and the remaining 0.5% is …show more content…
Each marketing campaign has a theme that reflects guest lifestyles and behaviors. These lifestyles and behaviors are the cornerstone for creating key brand touch-points within each campaign that includes media, promotions, partnerships, and food and beverage experiences that will encourage social interactions and bring each theme to life. For example, we promoted our NCAA sponsorship at Buffalo Wild Wings in 2013, which provided our guests with an opportunity to participate in our Big Shot Challenge; an augmented reality game in which our guests shot virtual free throws from their seat in the restaurant on their mobile phone. In addition, our local restaurant marketing efforts are designed to enhance community connections. Examples of this are our Home Team Advantage and Eat Wings, Raise Funds programs that connect our restaurants to local sports teams and community